Sierra Bancorp (BSRR) | Investment Case

1. Company Snapshot

1.a. Company Description

Sierra Bancorp operates as the bank holding company for Bank of the Sierra that provides retail and commercial banking services to individuals and businesses in California.The company accepts various deposit products, such as checking accounts, savings accounts, money market demand accounts, time deposits, retirement accounts, and sweep accounts.Its loan products include agricultural, commercial, consumer, real estate, construction, and mortgage loans.

The company also offers automated teller machines; electronic point-of-sale payment alternatives; online and automated telephone banking services; and remote deposit capture and automated payroll services for business customers.As of December 31, 2021, it operated 35 full-service branches, an online branch, a loan production office, an agricultural credit center, and an SBA center.Sierra Bancorp was founded in 1977 and is headquartered in Porterville, California.

Show Full description

1.b. Last Insights on BSRR

Sierra Bancorp's recent performance was negatively impacted by a decline in net interest income, which decreased by 4.4% year-over-year. The company's net interest margin contracted to 4.15%, a 14 basis point decline from the prior year. Additionally, Sierra Bancorp's non-interest income growth was hindered by a 10.4% decrease in service charges and fees. The company's loan growth was also sluggish, with a 2.3% year-over-year increase.

1.c. Company Highlights

Last Price	32.07
Change Percentage	-0.93%
Open	32.57
Previous Close	32.37
Market Cap ( Millions)	432
Volume	18482
Year High	32.82
Year Low	22.42
M A 50	29.06
M A 200	28.83

FCF Yield	9.62%
Dividend Yield	3.12%
ROE	2.91%
Debt / Equity	13.74%
Net Debt / EBIDTA	-85.46%
Price To Book	1.21
Price Earnings Ratio	42.03
Price To FCF	10.39
Price To sales	9.69
EV / EBITDA	7.17

2. Transcript Summary

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3. NewsRoom

Financial Contrast: Hanmi Financial (NASDAQ:HAFC) versus Sierra Bancorp (NASDAQ:BSRR)

Nov -02

Source: defenseworld.net

Sierra Bancorp (BSRR) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Oct -27

Source: zacks.com

Sierra Bancorp (BSRR) Lags Q3 Earnings Estimates

Oct -27

Source: zacks.com

Sierra Bancorp Reports Financial Results for Third Quarter and First Nine Months of 2025

Oct -27

Source: businesswire.com

Compared to Estimates, Sierra Bancorp (BSRR) Q2 Earnings: A Look at Key Metrics

Jul -28

Source: zacks.com

Sierra Bancorp (BSRR) Beats Q2 Earnings and Revenue Estimates

Jul -28

Source: zacks.com

Sierra Bancorp Reports Improved Financial Results for Second Quarter and First Six Months of 2025

Jul -28

Source: businesswire.com

Are Finance Stocks Lagging Sierra Bancorp (BSRR) This Year?

Jul -04

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Banking and Related Activities

Expected Growth: 3.0%

Sierra Bancorp's 3.0% growth in Banking and Related Activities is driven by increasing loan demand, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, cost savings initiatives, and a favorable interest rate environment have contributed to its growth.

7. Detailed Products

Commercial Banking

Provides financial solutions to businesses, including cash management, lending, and treasury management services.

Consumer Banking

Offers personal banking services, including checking and savings accounts, credit cards, and personal loans.

Mortgage Lending

Provides mortgage loans for home purchases and refinancing, as well as construction and home equity loans.

Treasury Management

Offers cash management services, including account analysis, wire transfers, and ACH origination.

Wealth Management

Provides investment and wealth management services, including trust and estate services.

Online Banking

Offers online banking services, including bill pay, fund transfers, and account management.

8. Sierra Bancorp's Porter Forces

Forces Ranking

Threat Of Substitutes

Sierra Bancorp operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand reputation and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Sierra Bancorp's customers have limited bargaining power due to the company's diversified customer base and lack of concentration in a single industry.

Bargaining Power Of Suppliers

Sierra Bancorp relies on a few large suppliers for its operations, giving them some bargaining power. However, the company's strong relationships with suppliers mitigate this threat.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and capital requirements, making it difficult for new entrants to compete with Sierra Bancorp.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Sierra Bancorp must continually innovate and improve its services to remain competitive.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	62.19%
Debt Cost	8.45%
Equity Weight	37.81%
Equity Cost	8.45%
WACC	8.45%
Leverage	164.51%

11. Quality Control: Sierra Bancorp passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

HBT Financial

A-Score: 6.7/10

Value: 6.4

Growth: 4.2

Quality: 7.6

Yield: 7.0

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

Capital Bancorp

A-Score: 6.5/10

Value: 6.8

Growth: 6.3

Quality: 7.0

Yield: 3.0

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

TowneBank

A-Score: 6.1/10

Value: 5.2

Growth: 5.2

Quality: 7.0

Yield: 6.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

Amalgamated Financial

A-Score: 6.0/10

Value: 7.6

Growth: 7.2

Quality: 8.2

Yield: 4.0

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

Sierra Bank

A-Score: 5.9/10

Value: 4.4

Growth: 6.2

Quality: 6.2

Yield: 7.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

RBB Bank

A-Score: 5.5/10

Value: 8.4

Growth: 5.0

Quality: 5.6

Yield: 6.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-2.08%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.45%

Sierra Bancorp - US82620P1021

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BSRR

1.c. Company Highlights

Average Yield

Stable Momentum

Average Growth

Earnings Beats

Revenues Beats

Medium Volatility

Strong Momentum

Fairly Valued

Revenues Miss

Average Quality

Better Quality

Cheaper

Earnings Miss

Expensive

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Banking and Related Activities

Expected Growth: 3.0%

7. Detailed Products

Commercial Banking

Consumer Banking

Mortgage Lending

Treasury Management

Wealth Management

Online Banking

8. Sierra Bancorp's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Sierra Bancorp passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

32.07$

Current Price

32.07$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA